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Euclidian fights back over stop loss

Euclidian has hit back at the stop loss Names' legal action, claiming the majority of the Names have signed up to a scheme of arrangement.

Euclidian Group chief executive James Stuart said, as of last week, "93% of the Integer membership have agreed to join the scheme of arrangement" that Integer will operate.

Euclidian Insurance Services managed Integer, which sold the stop loss policies, but Euclidian was not the insurer. Integer received court backing to proceed with the scheme of arrangement on 17 May.

Stuart added: "Of the 2,000 Integer members there is only around 5% who are not interested in winding up.

"In regard to the High Court claim, we have instructed our lawyers to see what action to take."

On 3 June, six Lloyd's Names issued a writ against Euclidian Insurance Services, Euclidian Risk Management Ltd and Euclidian Group over the "mis-selling" of personal stop loss policies for the 1999 and 2000 years of account.

The Stop Loss Recovery Group spokesman David Phillips said: "The six individuals are test cases representing about 500 claiming members of the Stop Loss Recovery Group."

He added that the total value of claim "had yet to be determined, but would likely be around £20m".

Stuart said the Euclidian Group refuted the claims and would "defend it vigorously".

"We offered run-off cover to the membership but with most run-off policies the sunset period is 36 months. Ours isn't. We have to pay out from the retained funds available for future obligations."

Integer members have until 20 June to submit their forms of proxy. Scheme policyholders will meet on 21 June. More information at www.integermutual.co.uk